Data concerning Wislocki Corporation's single product appear below: Selling price Variable expenses Percent of Per Unit...

 

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Data concerning Wislocki Corporation's single product appear below: Selling price Variable expenses Percent of Per Unit Sales $ 190 100% 38 20% $ 152 80% Contribution margin Fixed expenses are $1,050,000 per month. The company is currently selling 9,600 units per month. Required: The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $10 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $104,000 per month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by 460 units. What should be the overall effect on the company's monthly net operating income of this change? Change in net operating income Data concerning Wislocki Corporation's single product appear below: Selling price Variable expenses Percent of Per Unit Sales $ 190 100% 38 20% $ 152 80% Contribution margin Fixed expenses are $1,050,000 per month. The company is currently selling 9,600 units per month. Required: The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $10 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $104,000 per month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by 460 units. What should be the overall effect on the company's monthly net operating income of this change? Change in net operating income

Answer rating: 100% (QA)

To determine the overall effect on the companys monthly net operating income we need to calculate th... View the full answer